Do I need Making Tax Digital from April 2027?
Short answer
Yes, if your qualifying income for the 2025 to 2026 tax year is over £30,000 and no exemption applies. Qualifying income is your self-employment and property income added together, before expenses. You then use Making Tax Digital for Income Tax from 6 April 2027.
How to check in two minutes
- Take your turnover from self-employment in 2025 to 2026, before any expenses.
- Add your property income: rent received before expenses. For a jointly owned property, count only your share.
- If the total is over £30,000, you are in from 6 April 2027.
HMRC's example: £25,000 rent plus £27,000 from self-employment is £52,000, over the threshold even though neither part is (GOV.UK). More on what counts as qualifying income.
Will HMRC tell me?
HMRC reviews each Self Assessment return and writes to people whose qualifying income is over the threshold. It also says that if no letter comes, checking is still your responsibility (GOV.UK). For the first wave, HMRC began signing people up itself from September 2026 where they had not done it (GOV.UK).
How do I sign up?
You sign up on GOV.UK with the user ID and password you use for Self Assessment, or your agent signs you up. You must be registered for Self Assessment and have sent a return in the last 2 years. Sole traders need their business name, address and trade. You can also sign up early, as a volunteer (GOV.UK).
What to do before April 2027
- Work out your 2025 to 2026 qualifying income as soon as your books for that year are done.
- Pick software from HMRC's list and start keeping digital records in it from 6 April 2027, or earlier to practise.
- Note the first deadline: the update for 6 April to 5 July 2027 is due by 7 August 2027.
- Keep sending your normal Self Assessment return for 2026 to 2027.
Octobooks keeps the books of UK sole traders and landlords and sorts every entry into the categories of the self-employment pages (SA103F) and the UK property pages (SA105). Its Making Tax Digital for Income Tax connection is built and runs end to end against HMRC's test service (the sandbox). Octobooks is not on HMRC's list of compatible software yet; we are working towards recognition. Until it is listed, send your updates and your return through a product that is on the list.
And if I am under £30,000?
Then April 2028 may be your date: the threshold falls to £20,000 for qualifying income in 2026 to 2027. At £20,000 or less you are exempt and keep filing Self Assessment as now (GOV.UK).
More questions
- What is qualifying income for Making Tax Digital?
- Which accounting software works for Making Tax Digital for Income Tax?
- Who is exempt from Making Tax Digital for Income Tax?